SOUTHWIRE COMPANY TO PURCHASE ASSETS OF KAISER ALUMINUM & CHEMICAL CORP.'S GEORGIA WIRE PRODUCTS FACILITY IN MACON, GA.
SOUTHWIRE COMPANY TO PURCHASE ASSETS OF KAISER ALUMINUM & CHEMICAL CORP.'S GEORGIA WIRE PRODUCTS FACILITY IN MACON, GA. CARROLLTON, Ga., July 15 /PRNewswire/ -- Officials of Southwire Company announced today that Southwire has signed a letter of intent to purchase the assets of the Georgia Wire Products Division of Kaiser Aluminum & Chemical Corporation. Southwire Specialty Products Division, an operating unit of Southwire, will manage the facility located in Macon, Ga. The intended transaction should be completed this fall. The specific terms of the purchase agreement will not be disclosed. The value of the transaction will be substantially less than $20 million. Georgia Wire Products, which began operations in 1989, is a manufacturer of aluminum alloy wire and screw machine stock for the transportation, construction and consumer markets. "Southwire has been in the aluminum business for many years. We currently operate an aluminum smelter that produces the highest aluminum purity in the world and two aluminum rod mills, one of which is dedicated to serving the alloy market. This facility will enhance our existing operations by giving us an additional outlet for our rod," said Glenn Mann, vice president, Southwire Specialty Cable Divisions. "More importantly, it will allow us to expand significantly in the growing alloy wire market and will provide a laboratory for the further development of continuous cast alloy products." Southwire and Kaiser have begun discussions aimed at finalizing the purchase agreement. "We anticipate a smooth transition," Mann said. "We plan to operate the facility much as it has been in the past, sustaining the high level of quality and customer service that Georgia Wire Products is known for." Kaiser Aluminum's Newark, Ohio, plant will continue to sell rolled rod to Macon under a long-term supply agreement and will have a long- term tolling arrangement for screw machine stock wire products. Headquartered in Carrollton, Ga., Southwire Company is America's largest wiremaker. Its products include copper and aluminum rod, wire and cable for the electrical industry. Kaiser Aluminum & Chemical Corporation is the operating subsidiary of Houston-based Kaiser Aluminum Corporation (NYSE: KLU), which is 87 percent-owned by MAXXAM Inc. (AMEX: MXM). -0- 7/15/92 /CONTACT: Nancy Fulginiti of Southwire, 404-832-4576; or Elizabeth M. Simon of Kaiser Aluminum, 510-271-3313/ (KLU MXM) CO: Southwire Company; Kaiser Aluminum & Chemical Corporation ST: Georgia, Texas IN: SU: TNM
BR-EA -- AT013 -- 9704 07/15/92 16:12 EDT
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|Date:||Jul 15, 1992|
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